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Friday, June 01, 2007

Ind. Decisions - Hamilton County Superior Court Judge Nation has ruled in favor of Merit Management in a lawsuit filed against Lauth Indiana Resort & Casino over a joint venture involving the development of the French Lick Resort Casino

Inside Indiana Business is reporting this afternoon:

A judge in Hamilton County Superior Court has ruled in favor of Merit Management in a lawsuit filed against Lauth Indiana Resort & Casino over a joint venture involving the development of the French Lick Resort Casino.

An attorney representing Merit tells Inside INdiana Business that the ruling now opens the door for the lawsuit to go to trial. Merit Management had partnered with Indianapolis-based Lauth Property Group to form Lost River Development. That group lost out on a gaming license after the Indiana Gaming Commission awarded the license to a company owned by Donald Trump. That license was later rescinded due to Trump's financial problems.

Merit claims that Lauth was in breach of contract when Lauth then partnered with Bloomington-based Cook Group to seek the gaming license. Merit says it is seeking $100 million from Lauth Indiana Resorts & Casinos and its principals Robert Lauth, Jr., Gregory Gurnik and Vernon Back.

The IIB story, which appears to be based on a press release from Merit Management, concludes:
[Merit Management’s attorney Gary Grasso of the Chicago law firm of Grasso Bass & Williams] stated: “We believe that Mr. Lauth and Mr. Gurnik took advantage of Merit and their partners, playing the game with them until they saw an 11th hour opportunity to double-cross them and become the sole bidder for the contract with the Cook Group. We understand all too well, as the Cook Group apparently does now given its litigation with Lauth over the French Lick casino, that you must be careful before placing your trust in the Lauth people.”
The ILB would be pleased to post a copy of Judge Nation's opinion, and the reaction of Lauth Indiana Resort & Casino, should either become available.

Posted by Marcia Oddi on June 1, 2007 03:04 PM
Posted to Ind. Trial Ct. Decisions